No additional ASC 842 deferral for private entities
Defining Issues | November 2021
FASB decides not to further defer the effective date of ASC 842 for private companies and private not-for-profits.
Following the November 10, 2021 FASB rejection of a stakeholder request to further defer the effective date, private companies and private not-for-profits must adopt the new leases standard.
Applicability
- Private companies and private not-for-profit entities1
1 Not-for-profit entities that are not public not-for-profit entities (see table below).
Relevant dates
| Effective date | Public business entities and certain other entities* | Public not-for-profits** | Private companies and private not-for-profit entities |
|---|---|---|---|
Annual periods – Fiscal years beginning after | Dec 15, 2018 | Dec 15, 2019 | Dec 15, 2021 |
Interim periods – In fiscal years beginning after | Dec 15, 2018 | Dec 15, 2019 | Dec 15, 2022 |
Early adoption allowed? | N/A | Yes | Yes |
* (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; (3) employee benefit plans that file financial statements with the SEC. ** That had not issued GAAP-compliant financial statements reflecting the adoption of ASC 842 before June 3, 2020. | |||
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